Google PPA lifts Fervo to 1,054 MW and $11.9 billion in contracted geothermal revenue

A 396 MW, 15-year take-or-pay power purchase agreement with Google has lifted Fervo Energy's contracted geothermal capacity to 1,054 MW, representing about $11.9 billion of contracted revenue, the company said Monday in its third-quarter results. The figures were up from 658 MW and $7.2 billion at the end of June.

Fervo says the Google deal is the largest enhanced geothermal PPA signed to date. The contract is grid-connected, with first power expected in mid-2028. Fervo also committed to offer Google an option on roughly 600 MW more, for nearly 1 GW in total, and the two companies are pursuing behind-the-meter delivery under Utah's SB132 framework for the expansion. That structure could let Fervo directly power a potential data center in Beaver County, Utah.

"With commercial operations underway and significant demand for our technology, we are focused on delivering the remaining Phase I GeoBlocks on schedule," CEO Tim Latimer said in the release.

Where does Cape Station stand?

The 33 MW GeoBlock 1 at Cape Station reached commercial operation on Sept. 30, ahead of its contractual date. Capacity in operation rose to 36 MW, from 3 MW at the end of June.

The rest of Phase I is close behind:

• GeoBlock 2 has synced to the grid and is exporting test energy.
• GeoBlock 3 is in cold commissioning.
• Both blocks are due to reach commercial operation by Jan. 1, 2027, completing the roughly 100 MW first phase.

Drilling for the next eight GeoBlocks, now called Cape Google 400, is about 18% complete. Fervo targets an installed cost of $5,500 per kilowatt there, against about $7,000 per kilowatt for Phase I. An independent study by DeGolyer and MacNaughton put Cape Station's total capacity potential at about 8.4 GW, nearly double the prior 4.3 GW estimate.

What did the quarter's numbers show?

Fervo still reports the financials of a developer rather than an operating utility. Third-quarter revenue was $116,000. The operating loss widened to $43.7 million as general and administrative expense rose to $39.4 million. Capital spending came to $256.7 million.

Net income of $11.7 million did not come from operations. It reflected interest income plus two one-off items: an $11.8 million gain on interest rate swaps and a $29.9 million tax benefit. After noncontrolling interests, the loss attributable to common stockholders was $20.8 million, or $0.07 a share.

Quarter	Revenue	Operating loss	Net income (loss)	EPS
Q3 2025	$0.06M	($13.7M)	($15.8M)	($1.90)
Q2 2026	$0.11M	($28.7M)	($55.9M)	($0.38)
Q3 2026	$0.12M	($43.7M)	$11.7M	($0.07)

Why is capex guidance falling?

Fervo cut its second-half 2026 capital spending forecast to $700-750 million, from a prior $850-900 million. The company expects fourth-quarter capex of $450-500 million. Efficiencies have let some Cape Google 400 spending shift later in the build schedule. Total expected investment is unchanged, and commercial operation dates did not move.

The company still expects fourth-quarter revenue in line with prior expectations. That quarter will be its first full quarter of Cape Station sales. Fervo also left its 2027 revenue outlook unchanged. It ended September with $1.9 billion of unrestricted cash and $301.6 million of debt.

The demand backdrop favors firm, non-gas power. Gas turbine shortages are pushing data center developers toward other firm power sources, a dynamic that has helped drive deals such as the Google contract and Fervo's growing backlog of binding PPAs aimed at the data center market.

Fervo's next milestones are concrete: commercial operation of GeoBlocks 2 and 3 by Jan. 1, 2027, first power under the Google PPA in mid-2028, and proof that Cape Google 400 can hit its $5,500-per-kilowatt cost target.